Know which fact changes the answer

The bakery oven needs more than a label

A tenant owns an oven installed for a bakery. Removal is planned before the lease ends and appears possible without serious damage. The actual lease and installation still need review.

1. Tenant ownership and business use point toward a trade-fixture inquiry.
2. Intent, installation and the parties’ valid agreement can affect the answer.
3. A plan to repair does not authorize every structural alteration or override a removal condition.

Answer: Start with trade-fixture analysis. Do not turn the label into unconditional permission to remove every part of the oven or exhaust system.

Signed today, performance still ahead

Buyer and seller sign a valid purchase agreement. Inspection, financing, payment and deed delivery remain ahead.

1. The agreement has been signed.
2. The performance comparison asks whether obligations remain.
3. Executed can mean signed in document usage, while executory describes the remaining performance.

Answer: The agreement is executory as to performance. Calling the document executed to describe signing is not inherently wrong.

The lender receives two different documents

A borrower signs one document promising repayment and another creating a mortgage on the home to secure that debt.

1. The note contains the repayment promise.
2. The mortgage provides the real estate security.
3. Identify the requested function before choosing the document.

Answer: Promissory note for the debt promise; mortgage for the real estate security.

Listing-side assistance with the relationship established

An Illinois listing licensee represents a seller under an executed seller brokerage agreement. Before providing the listing-side assistance described here, the buyer receives the required written non-agency notice, and the facts expressly establish that the licensee does not represent the buyer. No dual role is undertaken.

1. The represented seller is the client.
2. The buyer’s nonclient status is supplied, rather than inferred merely from missing paperwork.
3. The buyer still receives the duties Illinois law imposes toward customers.

Answer: The buyer is a customer of this licensee on the supplied facts. The absence of a buyer form alone would not have established that result.

An easement in the relevant record chain

A valid driveway easement is properly recorded in the relevant chain of title. The applicable recording rule attributes notice to the later buyer, who has not actually learned of it.

1. The exercise supplies legally effective recording and the applicable notice consequence.
2. It does not supply actual knowledge.
3. A document outside the relevant chain or an ineffective recording needs separate analysis.

Answer: Constructive notice. That is not proof of actual knowledge and does not automatically satisfy every separate disclosure duty.

Client funds used for payroll

A broker puts identifiable client escrow money into the firm’s operating funds and uses it for payroll without authority. The broker plans to replace it later.

1. The funds have been improperly mixed.
2. Using them for the broker’s payroll adds unauthorized use.
3. An intention to replace the money does not supply authority.

Answer: The teaching facts involve both commingling and conversion. This is not a criminal verdict or a decision about a private damages claim.

A transfer is not automatically a release

Subject to a valid permitted assignment, Buyer A transfers purchase rights to Buyer B. Seller agrees to the assignment, but no agreement to extinguish A’s obligation or release A is supplied.

1. The stated transfer concerns contractual rights.
2. Consent to assignment does not necessarily express intent to extinguish the old obligation.
3. A novation requires the necessary agreement and extinguishment, not a new name alone.

Answer: Assignment is established. A novation releasing A is not established by these facts.

Policy change or physical alteration?

In covered housing, one resident requests an exception to a no-animal policy for a qualifying disability-related assistance animal. Another requests a necessary, reasonable physical alteration to improve access.

1. The first request concerns a policy.
2. The second concerns the physical premises.
3. The classification does not decide every coverage, documentation, payment or approval question.

Answer: The first is an accommodation request; the second is a modification request. Their legal conditions and cost rules must be considered separately.

Title insurance is not an automatic answer to a title objection

A sale contract requires marketable title subject to stated permitted exceptions. A title company offers a policy that excludes the very defect the buyer objects to. No cure, agreed waiver or other resolution is supplied.

1. The contract’s title-quality requirement must be evaluated.
2. An offered policy has its own exceptions and coverage terms.
3. An exclusion does not, by itself, remove the defect or establish that the buyer accepted it.

Answer: Insurability and the contractual marketability question are separate. The policy offer alone does not settle whether the seller has met the contract’s title requirement.

An objection to enforcement is not a universal no-remedy ruling

An exercise supplies an oral Illinois land-sale agreement, no writing signed by the party to be charged or authorized agent, and no applicable exception or cure. It asks about enforcing that land-sale promise against that party.

1. Section 2 of the Frauds Act imposes a writing requirement on the covered agreement.
2. The exercise expressly excludes an exception or cure; do not invent one.
3. The requested enforcement differs from a separate claim whose elements, defenses and remedy need their own analysis.

Answer: The supplied obstacle concerns enforceability of the covered land-sale promise. It does not automatically prove that every possible restitution or other claim is unavailable.

1. A commercial tenant owns shelving installed for its store. Proper removal before lease expiration is permitted under the stated agreement and can occur without material injury. Which classification best fits?

1. Life estate
2. Tax assessment
3. Appurtenant easement
4. Trade fixture

2. Which document records a borrower’s promise to repay a debt, as distinct from the real estate security?

1. Mortgage
2. Recorded plat
3. Promissory note
4. Deed conveying title

3. An exercise expressly establishes that wrongful pressure produced a contract that remains effective unless the protected party elects to avoid it. No physical compulsion preventing assent is supplied. Which status fits?

1. Automatically unenforceable for lack of a writing
2. Void in every circumstance
3. Fully performed
4. Voidable

4. A valid easement is properly recorded in the relevant chain of title. The applicable rule charges a later buyer with notice, although the buyer has no actual knowledge. Which term fits?

1. Novation
2. Constructive notice
3. Ratification
4. Actual notice

5. A broker mixes identifiable client escrow funds with operating money and spends those funds on payroll without authority. Which pair fits?

1. Accession and severance
2. Accommodation and modification
3. Assignment and novation
4. Commingling and conversion

6. A valid purchase agreement has been signed, but substantial closing performance remains. In a performance-status comparison, which term fits?

1. Executory
2. Void solely because closing is later
3. An unaccepted offer in every case
4. Fully performed

7. In document usage, a closing instruction says the agreement must be executed by both parties and returned. Which meaning of executed is most directly indicated?

1. Every future obligation necessarily completed
2. Automatically rescinded
3. Recorded in every case
4. Signed as required

8. A permitted assignment transfers contract rights. No required-party agreement extinguishing the original obligation or releasing the original obligor is supplied. What should you avoid assuming?

1. That contractual rights can be transferred subject to restrictions
2. That a novation automatically released the original obligor
3. That the actual agreement matters
4. That duties and rights require separate analysis

9. All required parties validly agree to a new obligation replacing an existing valid obligation, and expressly extinguish and release the old one. Which concept fits?

1. Constructive notice
2. Mere recording
3. Novation
4. Physical annexation

10. Under Illinois Section 15-10, what does the absence of signed buyer paperwork establish by itself about the consumer’s relationship with the licensee?

1. The consumer has waived all statutory duties
2. The consumer can never be a client
3. It does not by itself establish that the consumer is an unrepresented customer
4. The licensee automatically represents neither party

11. The Illinois facts expressly establish a seller client and an unrepresented buyer customer, with the required written non-agency notice given before the described listing-side assistance. Who is represented by that licensee?

1. The seller
2. Both automatically because they share a closing
3. Neither automatically because the buyer pays no fee
4. The buyer automatically because the buyer receives facts

12. An Illinois licensee is paid by a party other than the represented client. What does Section 15-40 say about payment alone?

1. It automatically creates agency for the payer
2. It does not determine the agency relationship
3. It makes all compensation lawful in every case
4. It removes duties to the represented client

13. A valuation opinion estimates the most probable price under specified market-value conditions. Which term describes that opinion rather than the amount paid in a particular sale?

1. Mortgage principal
2. Market value
3. Market price
4. Original construction cost

14. A buyer agrees to pay $315,000 for a home. A separate market-value opinion is $305,000. Which label best describes the $315,000 transaction amount?

1. Depreciated replacement cost automatically
2. Assessed value automatically
3. The only possible market-value conclusion
4. Market price

15. A comparison separates a loan’s interest rate from a broader annual measure that includes applicable finance charges. Which broader measure is intended?

1. Annual percentage rate, or APR
2. Loan-to-value ratio
3. Capitalization rate
4. Property tax rate

16. In covered housing, a necessary, reasonable exception to a policy is requested because of disability. Which category is being tested?

1. Mortgage acceleration
2. Contract assignment
3. Physical modification in every case
4. Reasonable accommodation

17. In covered housing, a resident requests a necessary, reasonable physical alteration to the premises. Which term fits the type of request?

1. Deed acknowledgment
2. Reasonable modification
3. Policy accommodation in every case
4. Novation

18. A seller is the grantor in a deed conveying an interest to a buyer. What is the buyer’s corresponding role?

1. Servient tenement
2. Grantee
3. Mortgagee necessarily
4. Designated managing broker

19. An easement benefits Parcel A and burdens Parcel B. Which traditional labels match the parcels?

1. Both are mortgagees
2. A is dominant; B is servient
3. Both are grantees in every instrument
4. A is servient; B is dominant

20. A validly created tenancy in common is specified. Which feature ordinarily distinguishes it from an unsevered joint tenancy?

1. Every share must be equal
2. Every co-owner must be married
3. Every owner holds the other owners’ entire interest
4. No automatic co-owner right of survivorship

21. An Illinois land-sale promise lacks the required signed writing, and the exercise supplies no applicable exception or cure. Which issue is most directly raised when enforcing that covered promise against the party to be charged?

1. Enforceability under the writing requirement
2. Automatic marketable title
3. Automatic completion of the sale
4. Automatic proof that every possible remedy is barred

22. A title company will issue a policy with an exception for a disputed defect. Does that willingness alone establish compliance with a sale contract’s marketable-title requirement?

1. No; the title standard, permitted exceptions and policy terms need separate analysis
2. Yes; any offered policy necessarily removes every defect
3. Yes; a policy exception is a deed releasing the adverse claim
4. No; all insured property is necessarily unmarketable

23. An Illinois licensee holds a managing broker license. No appointment as designated managing broker or required registration is supplied. Which conclusion is justified?

1. The person is automatically the owner of every brokerage account
2. The license alone does not establish the designated managing broker role
3. Every managing broker is automatically the designated managing broker
4. The person must be the client’s designated agent

24. An Illinois seller-client/buyer-customer problem asks whether Section 15-25’s duty concerning a latent adverse physical fact is triggered. Does constructive record notice alone necessarily establish the actual knowledge specified by that provision?

1. Yes; an unread record always proves personal knowledge
2. Yes; constructive notice and actual knowledge are identical for every statute
3. No; the specified actual-knowledge requirement must be evaluated separately
4. No; customers are never owed disclosure duties